“BLACK-GOVERNED COUNTRIES MATTER”: PM Davis signals prejudice, discrimination behind EU blacklisting

“BLACK-GOVERNED COUNTRIES MATTER”: PM Davis signals prejudice, discrimination behind EU blacklisting
Prime Minister Philip Davis, K.C.

NEW YORK, NEW YORK — Prime Minister Philip Davis told the United Nations’ General Assembly today there was mounting evidence that targeting of financial services’ sectors of “black-governed” states or former European colonies, is not motivated by compliance but “darker issues”.

The Bahamas was reportedly blacklisted by the European Union yesterday.

Davis called the move “profoundly unfair”, adding there were “several startling commonalities” when reviewing the countries that are flagged as high risk and blacklisted.

“Why is it that European states that operate frameworks akin to that of high-risk or blacklisted countries, are not even eligible for inclusion on these lists?” Davis said.

“Why are all the countries targeted – all of them – small and vulnerable, and former colonies of European states?

He continued: “We find it astounding that the $2-$3 trillion dollars which is estimated to be laundered each year through the developed countries are never flagged as causes for concern.

“And yet my country, which is widely recognized as one of the best-regulated countries in the world, and other countries like The Bahamas, are singled out for such reputational attacks? The robust regulatory regimes of our Central Bank, Securities Commission, and Insurance Commission are chastised on minor details of technical process, while much bigger transgressions in the developed world are ignored.”

Davis said: “The evidence is mounting, that the considerations behind these decisions have less to do with compliance, and more to do with darker issues of pre-judged, discriminatory perceptions. Black-governed countries also matter.”

Davis brushed off concerns during the 2022/23 Budget debate in June that proposed changes to commercial bank taxation would violate existing agreements with the European Union (EU).

At the time, the Opposition said it feared the reimposition of Business Licence fees on foreign banks would undermine commitments to eliminate preferential tax regimes.

However, Davis told Parliament “this is not the case”, adding after wide review there was a clear need to “level the playing field” and make financial entities doing business in The Bahamas pay Business Licence fees like any other entity.

In his speech before the UNGA today, the prime minister lamented that “little to nothing” has changed since he raised concerns at last year’s assembly over threats to the country’s financial services industry and the wider region; and called for the country to play a greater role in the oversight of global anti-money laundering, de-risking, and tax co-operation matters.

“We continue to struggle to recover from the economic shocks of hurricanes and the Covid-19 pandemic,” he said.

“We also have the additional battle with inflationary pressures, created not by us, but by the war in Europe. And now, to top it off, we are yet again the victims of inequitable and unjust measures on the part of major economic actors. All these factors place a stranglehold on our national development, and that of other small island developing states.”

Davis underscored the need for far-reaching reforms in the global financial system to make them not only more relevant but equitable in their scope.

He called on international financial institutions to forgive the debt incurred by COVID-19 economic shutdowns if they have the capacity to do so.

“Every year that we don’t do the right thing, the right thing to do becomes more expensive,” Davis said.

The prime minister also addressed climate change, and the challenges presented by both the ongoing embargo and sanctions on Cuba and the prolonged political and economic crisis in Haiti.


An earlier version of this article incorrectly stated the country had been blacklisted by the OECD. The Office of the Prime Minister has indicated that there was an error in the prime minister’s official remarks that referred to the OECD instead of the EU, and the story has been changed to reflect this.

About Ava Turnquest

Ava Turnquest is the head of the Digital Department at Eyewitness News. Her most notable beat coverage spans but is not limited to politics, immigration and human rights, with a focus especially on minority groups. In 2018, she was nominated by the Bahamas Press Club for “The Eric Wilmott Award for Investigative Journalism”. Ava is deeply motivated by her passion about the role of fourth estate, and uses her pen to inform, educate and sensitize the public.

1 comments

But… but.. what about reparations, becoming a republic and getting our fair share of carbon credits looool

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